LondonMetric Property plc Full Year Results for the Year Ended 31st March 2022

LONDONMETRIC PROPERTY PLC

(“LondonMetric” or the “Group” or the “Company”)

FULL YEAR RESULTS FOR THE YEAR ENDED 31 MARCH 2022

Conviction sector calls and income focus deliver record property and accounting returns

LondonMetric today announces its full year results for the year ended 31 March 2022 .

1. Including share of joint ventures, excluding non-controlling interest
2. Further details on alternative performance measures can be found in the Financial Review and definitions can be found in the Glossary

Sector alignment and asset selection delivering strong portfolio performance

• Portfolio value grown to £3.6bn (2021: £2.6bn)
• Total Property Return of 28.2%, outperforming IPD All Property of 19.6%
• Capital return of 22.9% (IPD All Property: 14.9%), logistics delivered 26.5%
• ERV growth of 10% and yield compression of 61bps
• EPRA NTA per share increased by 37.2% to 261.1p, driven by 67.9p valuation gain
• Total Accounting Return of 41.9%

Continued focus on reliable, repetitive and growing income drives earnings and dividend growth

• Net rental income up 7.9% to £133.1m, on an IFRS basis increased by 8.6%
• EPRA cost ratio down 110 bps to 12.5%
• EPRA earnings up 9.2% to £93.5m, +5.5% on a per share basis
• IFRS reported profit up 185% to £734.5m
• Dividend progression of 6.9% to 9.25p, 109% covered, including Q4 dividend declared of 2.65p
• Continued progression expected with Q1 23 dividend guidance of 2.3p, a 4.5% progression on Q1 22

Distribution weighting increased to 74.6% with urban logistics at 43.9%

• £575m of acquisitions with a WAULT of 15 years and 64% of rent subject to contractual uplifts
• £208m of disposals, largely located in the Midlands and the North, with a WAULT of 10 years
• Post year end acquisitions of £43m with a WAULT of 13 years
• Post year end disposals of £86m with a WAULT of 8 years and at a 14% premium to March 22 book value

166 asset management initiatives delivering £10.5m pa additional income and 5.4% like for like income growth

• Rent reviews +13% with urban open market reviews +22%
• Lettings signed with WAULT of 16 years
• EPCs improved with A-C ratings covering 85% of portfolio (2021: 74%)
• Developments underway on 0.9m sq ft representing £8.7m of rent pa, 86% pre-let and 89% BREEAM Very Good

Our activity has strengthened the long, strong and growing income characteristics of the portfolio

• Occupancy remains high at 98.7%, WAULT of 11.9 years and gross to net income ratio of 98.8%
• Contractual rental uplifts on 61% of income with embedded reversion on urban logistics portfolio

Strong balance sheet and new board appointment

• LTV of 28.8% with weighted average debt maturity of 6.5 years and cost of debt at 2.6%
• £175m equity placing, £780m of debt refinancing and further £150 million of new debt facilities during year
• Appointment of Alistair Elliott as a Non Executive Director, as announced separately today 

Andrew Jones, Chief Executive of LondonMetric, commented:

” Our strong set of results continues to reflect the many years of forward planning that has seen us pivot into assets that benefit from the structural shifts. After all, the macro is far more important than the micro. 

 “Despite the uncertain global backdrop, demand for warehousing remains both broad and deep, with online operations competing with businesses who are reacting to global trade disruptions by onshoring more of their operations and building up inventories to avoid being caught out by supply disruption. Previously we have talked about globalisation and just in time. Today it's increasingly about localisation and just in case.

“Our investment thesis is focused on owning strong assets, in the winning sectors and in the best geographies. This has seen us significantly increase our weighting to urban logistics, our strongest conviction sector call. Falling supply, coupled with rising demand from acceleration in online shopping, growing customer expectations and the arrival of new industries such as Q-commerce and dark kitchens, is underpinning unrivalled rental growth.

“Our portfolio has been strengthened over the year by our investment, development and asset management activities, which continues to increase our rental income and again allow us to progress the dividend by 6.9% .”